How much does errors and omissions (E&O) insurance cost?

In 2023, the national median monthly cost of errors and omissions (E&O) insurance for new Progressive customers was $42. The average rate was $64 per month.

The cost of E&O insurance, which is a type of professional liability insurance, varies based on industry, company size, and more. Understanding how these features affect your E&O insurance rate, can help you make informed choices when protecting your business.

E&O insurance cost factors

Insurers consider your business's overall risk when calculating your E&O insurance rate. The following factors can influence your small business insurance cost for an E&O policy:

Industry and profession

Your profession affects your E&O insurance premium. Jobs such as lawyers and accountants often pay more for E&O insurance because of their potential for costly mistakes. Insurers will look into how much a claim could cost, industry trends, and specific regulations when determining your rate.

Business size

The risk of claims increase the more clients and employees your business has. As a result, larger companies typically have higher rates than smaller ones, even within the same line of work.

In some fields, E&O coverage can be required per employee, which could also impact your E&O insurance cost. The larger your staff, the more you can expect to pay.


The cost of E&O insurance varies based on location due to different risk levels and regulations. Places with more lawsuits or strict laws might see higher insurance prices. On the other hand, areas with fewer claims and lighter restrictions tend to have lower costs.

For example, some states require certain professionals, like real estate agents and insurance agents, to have a certain amount of E&O coverage to practice. These requirements could affect your errors and omissions insurance cost.

Coverage limits

Policy limits influence the cost of errors and omissions insurance. Higher limits typically cost more because you get more protection. By contrast, a lower limit can reduce your premium, but it also gives you less coverage after a claim. It's important to balance adequate protection with expenses when getting your E&O policy.

Years in business

Newer businesses might have a higher premium because they're less experienced. Having more years in business demonstrates expertise and knowledge and can lead to lower E&O insurance rates.

History of claims

If your business experienced lawsuits or claims in the past, you will likely be considered higher risk, resulting in more expensive E&O insurance rates.

How to get cheap E&O insurance

Finding an affordable E&O insurance policy doesn't mean compromising on the quality of your coverage. Consider the following discounts and other ways to save on your E&O insurance cost:

Set higher deductibles

Choosing a higher deductible is one way to save on your E&O insurance rate. Your deductible is the amount you'd pay out of pocket if you make a claim using your E&O insurance policy. Most insurance companies charge lower premiums for high-deductible plans because you're covering a larger portion of any potential loss yourself.

Find discounts

See if there are opportunities to save on your E&O insurance costs by taking advantage of discounts. For example, some insurers offer discounts if you pay your policy in full. You may also be able to save if you have other policies in place with your insurer. Ask about discounts when getting your quote.

Maintain continuous coverage

Coverage with no policy gaps can help you save on E&O insurance costs by showing that you're trustworthy. Continuous coverage also ensures you're protected from expensive claims.

Follow best practices for your profession

Following best practices can reduce the potential for an E&O insurance claim. In many cases, implementing quality assurance protocols can help prevent mistakes by checking and evaluating work.

Find out your E&O insurance cost

Get a quote to see E&O insurance rates customized for your specific needs. Our licensed business insurance experts can help you find the ideal coverage for your business at the right limits.

Start a quote and protect your business with E&O insurance today

Get a quoteOr, call 1-888-806-9598